Evaluating property tax hikes, Prof. Dr. Duran Bülbül warns: Homes are at risk, how can citizens protect their rights?

Recent high increases in property taxes and the way fair market values determined by appraisal commissions are notified to citizens are causing serious debate and concern, especially among middle-income, retired, and low-income groups; Prof. Dr. Duran Bülbül evaluated the legal justifications for these increases and the rights of citizens.

Answering the question of who is responsible for determining tax rates, Prof. Dr. Duran Bülbül said, “According to the Property Tax Law, the President has the authority to increase or decrease these rates. The problem with municipalities arises especially in the fair market values determined for the 2026-2029 period. According to Articles 29 and 30 of the Property Tax Law, there is an exorbitant difference between the actual value of the property and its market value. The valuation methods in the Tax Procedure Law have lost their validity in terms of property tax. For this reason, a new valuation model specific to property tax needs to be created.”

Stating that property tax valuation for future years is difficult due to construction costs and the effects of the pandemic, Bülbül said, ''For the first time, they made the valuation for the 4-year property taxes in 2021. According to TURKSTAT data, construction costs have increased 6.5 times in the last 4 years, and the effects of the pandemic have been added to this. For this reason, we are now facing an exorbitant price increase in the valuation to be made for 2026.''

CITIZENS CAN SEEK THEIR RIGHTS WITH COMPARABLE SALES AND DOCUMENTS

Bülbül said, “The fair market values determined by appraisal commissions need to be notified to citizens in an objective manner. However, in current practice, no street-by-street or region-by-region examination is conducted; a global valuation is used. This is not legal, not fair, and contrary to the tax burden. Citizens can file a lawsuit with comparable sales contracts, fair market values announced by municipalities, photographs, and sketches. Articles 29 and 31 of the Property Tax Law, the Tax Procedure Law, and Article 73 of the Constitution can be used as grounds for the lawsuit. Litigation expenses and attorney fees should be charged to the administration against which the lawsuit is filed.”

DANGER FOR MIDDLE-INCOME AND RETIRED CITIZENS

12punto columnist Duran Bülbül said, “While fair market values were not increased when inflation was high, increasing property taxes by 5, 10, 20, or even 50 times while inflation is falling creates a serious danger. Middle-income, retired, and minimum-wage citizens may not be able to pay these taxes and may face the risk of losing their homes. This will pave the way for people to become propertyless.''

MIDDLE-INCOME CITIZENS UNDER THE BURDEN OF PROPERTY TAX

Stating that property tax should be collected from those whose income level is at a certain point, Prof. Dr. Duran Bülbül emphasized: ''First of all, taxes should not be collected on the properties of middle-income, low-income, retired, and poor segments. For this, a flat and fixed tax should be collected from poor and middle-income people; a progressive tax should not be collected. The main tax should be collected from those who make capital gains on property and those who monopolize property and have accumulated it in certain segments. Property tax and also income tax should be collected. However, property tax should not be collected from middle-income, poor, low-income, and retired people. If it is to be collected, a very low, fixed tax should be collected.''

''THEY WILL DEFINITELY GET THEIR RIGHTS WHEN A LAWSUIT IS FILED.''

Continuing his words by saying that the authority of citizens to file a lawsuit against high fair market value determinations is extremely effective, Prof. Dr. Duran Bülbül continued as follows:

''Because there is no situation that would cause an increase in property tax. If you increase property taxes by 10, 5, or 20 times in a period when you say inflation has fallen to 20% or 30%, while you did not increase property taxes even in periods when inflation was 100% or 150%, this causes an exorbitant increase and there is no legal justification for it. Housing prices and property prices have increased by about 8 times in the last 4 years. Housing construction has increased by about 6 times.

Now, in a period of such an exorbitant increase, since their values have already increased on their own, the tax has automatically increased as well. Therefore, for a citizen to seek their rights, they must file a lawsuit regarding this issue, and when a lawsuit is filed, they will definitely get their rights.''

News Source: 12punto